Nectar Signs Global Credit Investments As Strategic Funding Partner
Nectar, the New Zealand-owned digital lending platform, has secured strategic funding from specialist fixed-income and credit investment manager Global Credit Investments (GCI). The first ranking debt security will enable Nectar’s personal loan book and new retail finance product NectarPay to expand as consumers rapidly adopt digital borrowing options within New Zealand’s $10.8B personal loan market.
Unlike traditional facilities where funding lines are for a specific amount, GCI’s funding is open ended and the facility increases as Nectar draws down more funding. This extra liquidity will support Nectar’s growth until it can access capital markets. Nectar retains its existing investors including wholesale peer to peer investors.
Steven Sher, Managing Director, GCI says “In our third transaction in New Zealand, we’re excited to support an emerging fintech lender with a sophisticated credit and origination platform as it embarks on its next phase of growth.”
NectarPay, the new ‘buy now pay later’ product for big ticket retail purchases up to $25,000, is now live with its first partner. Learning People, an online specialist education provider of international vendor certifications in tech and project management, will offer interest-free loans to students processed on Nectar’s platform.
Symon Nausbaum, CEO at Nectar, says “This strategic partnership with GCI enables us to grow to the point we can secure a wholesale bank facility, and is an endorsement of our model and potential. We are extremely well positioned to capitalise on kiwis’ increasing demand for faster, easier and more cost effective forms of consumer finance. As is happening overseas, digital lending is becoming a significant part of New Zealand’s personal loan market which increased from $10.2B to $10.8B in 2020 despite the impact of COVID-19.”
Nectar has now originated loans worth over $40M. Personal loans up to $25,000 are available, with the average being $8,000.